The Panda Project Announces $5,000,000 Systems Letter of Intent.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--Nov. 12, 1998--The Panda Project See Archistrat computer. , Inc. today announced that it has entered into a letter of intent with Round Stone Holdings Ltd., a U.K.-based company ("Round Stone"), providing for the grant by the Company to Round Stone of exclusive manufacturing, marketing and sales rights with respect to the Company's Rock City(tm) and Archistrat(R) Computers and the sale to Round Stone of all Systems Division inventory. The letter of intent provides for total licensing fees over a 5 year period of $5,000,000. Additionally, the letter of intent provides for payment of royalties in years 2004 and 2005, contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. in those years, to a maximum royalty of $2,000,000 per year. Stanford W. Crane, Jr., Panda's President and Chairman of the Board of Directors, commented: "I have felt that Panda's systems have had terrific potential, especially when combined with VSPA (Very Small Peripheral Array) An earlier surface mount chip housing from The Panda Project, Inc., Boca Raton, FL. VSPA offered a 60% reduction in size over the popular PQFP method while adding more contacts. See Compass connector. (tm) and Compass technology. Unfortunately Panda's limited capital resources and the working capital needs during the commercialization of the VSPA line made spinning-off the Systems business the Company's best option. The proposed arrangement with Round Stone would result in Panda receiving capital from licensing fees and inventory sales, along with a customer for our advanced technologies." Crane is also a shareholder in Round Stone Holdings Ltd. Consummation of the transactions described in the letter of intent is subject to the execution and delivery of definitive legal agreements and requisite approvals. Anticipated timing for the completion of the transaction is the first quarter of 1999. Forward looking statements in this release, including statements concerning benefits of the proposed transaction discussed above are based on information available to the Company as of the date hereof and involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are failure to close the proposed transaction, competitive pressures, general economic conditions, risks of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. NOTE TO MEDIA: A photo of The Panda Project's Archistrat Computers is available on Business Wire's Photo Bulletin Board Service (BBS (1) (Bulletin Board System) A computer system used as an information source and forum for a particular interest group. They were widely used in the U.S. ). Call 800/221-2462 to download photo file No. 1003BW1.JPG See JPEG. jpg - JPEG at no cost from Business Wire's BBS. Visit The Panda Project on the World Wide Web at www.pandaproject.com |
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